AMD and Nvidia rivalry is entering a more brutal and real stage
Nvidia dominance challenged as AMD gains ground in AI compute. Arista data reveals a market shift from technical monopoly to rational competition, impacting chip pricing and data center strategies.
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In an era where the AI narrative dominates global capital markets, investors have grown accustomed to simplifying the compute power competition into a story with almost no suspense: NVIDIA is the winner-takes-all, while everyone else is just running alongside.
But during an earnings conference call last Thursday evening, this seemingly unshakable consensus was pried open for the first time by a specific, quantified number.
When Arista Networks CEO Jayshree Ullal stated, “A year ago it was almost 99% NVIDIA, but now in 20%–25% of the projects, AMD is becoming the preferred accelerator”, the market did not treat it as an ordinary corporate remark. The next day, NVIDIA’s stock fell about 2%, while AMD rose nearly 1%.
This was not a short-term, emotion-driven fluctuation, but a collective re-evaluation of whether the AI compute market is shifting from a “technical monopoly phase” to a “rational competition phase”.
